We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $7.86 for the fiscal second quarter, suggesting a decline of 18.6% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $13.3 billion, indicating a year-over-year decrease of 17.5%.
Q1 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the first quarter of fiscal 2024. However, the bottom and top lines dipped from the year-ago actuals. On average, the company has a trailing four-quarter earnings surprise of 17.1%.
Our model predicts an earnings beat for Deere in second-quarter fiscal 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here.
Earnings ESP: The Earnings ESP for Deere is +0.63%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Deere currently carries a Zacks Rank #3.
Key Factors to Consider
Agricultural commodity prices have been volatile throughout the February-April quarter due to the prospects of a supply surge in the backdrop of low demand. Low commodity prices are expected to have weighed on farm income and influenced farmers’ investment decision-making.
High production costs; selling, administrative and general expenses; and research and development expenses are likely to have impacted the company’s margin in the quarter. Moreover, the fiscal second-quarter performance is expected to have been impacted by lower sales volume and production volume.
Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal first quarter.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $5.75 billion for the fiscal second quarter, suggesting a year-over-year decrease of 26.4%. We expect the segment’s operating profit to be $1.34 billion, indicating a 38.2% fall from the prior-year quarter’s reported figure. Gains from price realization are likely to have been somewhat offset by escalated production costs and lower shipment volumes.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3.65 billion for the fiscal second quarter, indicating a 12% decline from the prior-year quarter’s actual. The segment’s operating profit is estimated at $609 million, suggesting a 28.2% year-over-year fall. The small Agriculture & Turf segment’s performance is expected to have been affected by elevated production costs; higher research and development, and selling, general and administrative expenses; and lower shipment volumes, partially offset by price realization.
The Construction & Forestry segment’s sales are estimated to be $3.66 billion for the fiscal second quarter, suggesting an 11% dip from the prior-year quarter’s reported number on lower volume. We predict the segment’s operating profit to slip 17.6% from the prior-year quarter’s reported figure to $690 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1.02 billion for the fiscal second quarter, down 8.2% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $181 million, whereas it reported $41 million in the prior-year quarter.
Price Performance
Shares of Deere have gained 13.4% in the past year compared with the industry’s 6.5% growth.
Image Source: Zacks Investment Research
Peer Performance
The impacts of low commodity prices and high interest rates impacted Deere’s peer AGCO Corp. (AGCO - Free Report) in the first quarter of 2024. AGCO delivered an adjusted EPS of $2.32 in first-quarter 2024 compared with the prior-year quarter’s $3.51. Revenues decreased 12.1% year over year to $2.93 billion in the March-end quarter.
Other Stocks to Consider
Here are some other stocks that you might consider, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release first quarter 2024 earnings soon, currently has an Earnings ESP of +11.11 and a Zacks Rank #3. The company has a trailing four-quarter surprise of 22.7%, on average. The Zacks Consensus Estimate for AEO’s earnings for the first quarter is pegged at 27 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on May 30, currently has an Earnings ESP of +0.07 and a Zacks Rank #3.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the third quarter of fiscal 2024 is pegged at $3.69. COST has a trailing four-quarter surprise of 2.6%, on average.
Image: Bigstock
Deere (DE) to Report Q2 Earnings: What's in the Offing?
Deere & Company (DE - Free Report) is scheduled to report second-quarter fiscal 2024 results on May 16, before the opening bell.
Which Way Are Estimates Trending?
The Zacks Consensus Estimate for Deere’s earnings per share is pegged at $7.86 for the fiscal second quarter, suggesting a decline of 18.6% from the year-ago reported figure. The Zacks Consensus Estimate for total revenues is pinned at $13.3 billion, indicating a year-over-year decrease of 17.5%.
Q1 Results
Deere’s sales and earnings surpassed the Zacks Consensus Estimate in the first quarter of fiscal 2024. However, the bottom and top lines dipped from the year-ago actuals. On average, the company has a trailing four-quarter earnings surprise of 17.1%.
Deere & Company Price and EPS Surprise
Deere & Company price-eps-surprise | Deere & Company Quote
What Does Our Model Indicate?
Our model predicts an earnings beat for Deere in second-quarter fiscal 2024. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is precisely the case here.
Earnings ESP: The Earnings ESP for Deere is +0.63%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Deere currently carries a Zacks Rank #3.
Key Factors to Consider
Agricultural commodity prices have been volatile throughout the February-April quarter due to the prospects of a supply surge in the backdrop of low demand. Low commodity prices are expected to have weighed on farm income and influenced farmers’ investment decision-making.
High production costs; selling, administrative and general expenses; and research and development expenses are likely to have impacted the company’s margin in the quarter. Moreover, the fiscal second-quarter performance is expected to have been impacted by lower sales volume and production volume.
Nevertheless, favorable price realization is expected to have negated some of these headwinds, as seen in the fiscal first quarter.
Segmental Projections
Our model predicts the Production & Precision Agriculture segment’s revenues to be $5.75 billion for the fiscal second quarter, suggesting a year-over-year decrease of 26.4%. We expect the segment’s operating profit to be $1.34 billion, indicating a 38.2% fall from the prior-year quarter’s reported figure. Gains from price realization are likely to have been somewhat offset by escalated production costs and lower shipment volumes.
Our estimate for the Small Agriculture & Turf segment’s revenues is pegged at $3.65 billion for the fiscal second quarter, indicating a 12% decline from the prior-year quarter’s actual. The segment’s operating profit is estimated at $609 million, suggesting a 28.2% year-over-year fall. The small Agriculture & Turf segment’s performance is expected to have been affected by elevated production costs; higher research and development, and selling, general and administrative expenses; and lower shipment volumes, partially offset by price realization.
The Construction & Forestry segment’s sales are estimated to be $3.66 billion for the fiscal second quarter, suggesting an 11% dip from the prior-year quarter’s reported number on lower volume. We predict the segment’s operating profit to slip 17.6% from the prior-year quarter’s reported figure to $690 million.
Our estimate for the Financial Services segment’s revenues is pegged at $1.02 billion for the fiscal second quarter, down 8.2% from the year-ago quarter. Our projection for the segment’s operating profit is pinned at $181 million, whereas it reported $41 million in the prior-year quarter.
Price Performance
Shares of Deere have gained 13.4% in the past year compared with the industry’s 6.5% growth.
Image Source: Zacks Investment Research
Peer Performance
The impacts of low commodity prices and high interest rates impacted Deere’s peer AGCO Corp. (AGCO - Free Report) in the first quarter of 2024. AGCO delivered an adjusted EPS of $2.32 in first-quarter 2024 compared with the prior-year quarter’s $3.51. Revenues decreased 12.1% year over year to $2.93 billion in the March-end quarter.
Other Stocks to Consider
Here are some other stocks that you might consider, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases.
American Eagle Outfitters, Inc. (AEO - Free Report) , expected to release first quarter 2024 earnings soon, currently has an Earnings ESP of +11.11 and a Zacks Rank #3. The company has a trailing four-quarter surprise of 22.7%, on average.
The Zacks Consensus Estimate for AEO’s earnings for the first quarter is pegged at 27 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Costco Wholesale Corporation (COST - Free Report) , scheduled to release earnings on May 30, currently has an Earnings ESP of +0.07 and a Zacks Rank #3.
The Zacks Consensus Estimate for Costco Wholesale’s earnings for the third quarter of fiscal 2024 is pegged at $3.69. COST has a trailing four-quarter surprise of 2.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.